If you possess a small company or a start up with few employees there might be a reasonable argument for you to outsource some of the processes to a third party. Outsourcing was done many years ago as it started with manufacturing companies that wanted to reduce their labor cost in countries where salaries were lower. Nowadays we mostly use these opportunities to outsource services but it’s also a lot easier to do that as internet is all over the world and much more reliable.
As a company owner you can make a big difference if you outsource some core processes. This would lead to cutting down the operational costs significantly.
Here are some examples of activities that can be successfully outsourced and would make a difference for your budget. Think of back office work – it does not add any value to your business however it takes time, work force and of course money for salaries. On the other hand, you can’t neglect these processes and say I won’t do them as without doing it your company won’t exist or would need to pay a lot of penalties. Let outsourcing companies take care of your non-value adding but essential activities at a lower price and sometimes with much better quality. Here are some examples of them:
The most common process to be outsourced is customer support. Everything connected to contact with customers like phone or email support, contracts and reports can be outsourced.
As you know all kind of administrative tasks can take up a lot of time and energy. In order not to spend too much on making an appointment for example, you can leave this task to a virtual assistant. He/She can maintain your calendar, schedule meetings and appointments, as well as answer phone calls and emails. This will help you focus on the business and eliminate the need to think of administrative tasks.
Accounting and Finance
Bookkeeping or financial reports may cost your employees a lot of valuable time but also require additional education and qualifications. Every business is obliged to keep books and good records but this can be done through a third party organization specialized in bookkeeping. It might be wise to outsource these functions to an outside company and take advantage of their experience.
You may also consider outsourcing IT, Marketing, copywriting and other activities that can be well defined and transferred to your outsourcing partner.
Outsourcing has a lot of benefits and mainly to allow you as a company owner to focus on core activities and outsource the rest. When outsourcing there are also other advantages like access to specialized personnel, lowering labor costs, transfer and exchange of knowledge, higher performance and output, reducing risks.
To help increase productivity and efficiency while minimizing fixed costs you may choose outsourcing of various tasks to companies specialized in that. When signing a contract you’re your outsourcing partner the fee paid for a full time employee will include employment taxes, computers, phones, space, recruiting expenses. There will be also someone responsible for them outside of your organization. You will eliminate these costs from your budget and also save time for the core of the business.